You are here: Home » Finance » Money & Forex Markets » News
Business Standard

Rupee pulls back from near one-week high, down 10 paise

A sudden rebound in global crude prices after its two-day fall also added to the pressure on the trading front

Press Trust of India  |  Mumbai 

Rupee, NPS, National Pension System
Rupee, NPS, National Pension System

The rupee retreated from its near one-week high and ended lower by 10 paise at 65.11 against the in a restricted trade amid stray dollar demand.

market sentiment turned little nervous and witnessed lethargic trade as currency traders preferred to stay on the sidelines after the rupee's remarkable breakout over the weekend.


A sudden rebound in global crude prices after its two-day fall also added to the pressure on the trading front, though abundant capital inflows largely cushioned the fall.

Global credit rating agency Moody's on Friday upgraded India's sovereign credit rating by a notch to 'Baa2' with a stable outlook citing improved investment climate along with other reform measures.

The rating upgrade is likely to trigger more capital inflows into the country, a dealer commented.

Brent crude, the international benchmark, is trading at $62.20 a barrel in early Asian trade.

In the meantime, Foreign investors and funds pumped a whopping over $2 billion in the Indian equity markets this month so far, enthused by the government's announcement of recapitalising PSU banks, improvement in global sentiment and stable currency.

According to depository data, foreign portfolio investors (FPIs) infused a net sum of Rs 14,348 crore ($2.2 billion) in equities during November 1-17.

Meanwhile, domestic equities managed to close in the positive zone with a small gain, stretching their winning run for the third straight session led by select frontline stocks.

Earlier at the (forex) market, the rupee resumed marginally higher at 64.96 compared to last weekend close of 65.01 on bouts of dollar selling and also underpinned by Moody's decision to upgrade the ratings.

But, it soon lost momentum with caution creeping back into trading sentiment after the recent sharp move against the

The local unit hit an intra-day low of 65.13 before ending at 65.11, a loss of 10 paise, or 0.15 per cent.

The rupee had settled at a one-week high of 65.01 last Friday.

In cross-currency trades, the rupee drifted sharply against the Pound sterling to end at 86.30 from 85.79 per pound and also fell back against the Euro to finish at 76.76 from 76.71.

The home unit also remained subdued against the Japanese yen to close at 58.06 per 100 yens from 57.75.

On the global front, the greenback pared early gains against other major currencies, as uncertainty over the fate of a major U S tax overhaul and political turmoil in Germany dominated market sentiment.

Meanwhile, the U S House of Representatives on Thursday approved a broad package of tax cuts, which will now be debated by the Senate.

The dollar index, which measures the greenback's value against a basket of six major currencies, was up at 93.65 in early trade.

Elsewhere, the common currency euro is trading a bit higher against the after recovering swiftly from early lows after the German coalition talks collapsed as deal breaking FPD said it would support minority government.

Pound sterling maintained its up move on expectations that the UK government's committee meeting will consider Brexit's key controversy-the bill for leaving the EU at a meeting of the Brexit cabinet sub-committee on Monday.

In forward market today, premium for dollar continued trading weak owing to sustained receiving from exporters.

The benchmark six-month premium payable in April dropped to 123-125 paise from 127-129 paise and the far forward October 2018 contract also declined to 262-264 paise from 266 -268 paise last weekend.

On the International energy front, crude prices eased modestly, as traders were reluctant to take large positions ahead of an OPEC meeting next week, when the exporter group is expected to decide whether to continue output cuts aimed at propping up prices.

Brent crude futures were at USD 62.37 per barrel, down 35 cents on the day, while U S West Texas Intermediate (WTI) crude futures were down 7 cents at USD 56.48 a barrel.

First Published: Mon, November 20 2017. 20:06 IST
RECOMMENDED FOR YOU